I recently saw an article which stated that for homeowners “their houses are like piggy banks.” But if you own your house, an increase in its value doesn’t seem to help you in any real way, since to realize that gain you’d have to sell it. But then you’d have to buy or rent another place to live, which would also cost more. It seems like the only concrete effect of a rising housing market for most homeowners is an increase in their insurance costs. Am I missing something?
In: 1833
No. The world would be a better place if housing were less expensive. In the long run paying more for it (and more interest on it) drains money from the working class.
The upper class use housing as something between a gambling game, extorting high rent from the poor, and an investment.
In the short run, rising values help people who already own a house. That’s like a pyramid scheme where people who already are in get ahead while newcomers lose.
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